Commercial Real Estate Auctions on the Rise

<p>Commercial property auctioneers are experiencing a spike in business. As banks start to reclaim property from defaulting borrowers, they are looking to auctioneers to assist with moving unwanted inventory.<o:p></o:p></p> <p>&#8220;Every lender is needing to generate liquidity, and there&#8217;s no sense in holding on to a vacant property, says Stephen Karbelk, president of Tulsa, Okla.-based National Commercial Auctioneers. Karbelk&#8217;s company is currently auctioning property for Allied Capital, one of the largest business development companies in the <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place><o:p></o:p></p> <p>One of the main benefits of participating in commercial property auctions for the lender is the turnaround time cost efficiency. While most properties can take months or even years to sell, the auction process is completed in a matter of weeks. Other benefits include:<o:p></o:p></p> <p>--Competition among buyers<o:p></o:p></p> <p>--Exposure to a larger number of qualified buyers<o:p></o:p></p> <p><o:p>&nbsp;</o:p>--Reduction of long-term carrying costs and taxes<o:p></o:p></p>